Posts by: Lee Arnold

Achieving Your Goals; a Supplemental Guide

We’ve been talking about goals a lot lately and for good reason.

If you need a refresher on what S.M.A.R.T. Goals are and how to use them to get what you want, CLICK HERE.

If you attended the Lee Arnold CEO Fireside chat this last Monday, January 8th, then you know exactly what I’m talking about. Kudos, too, for all the ambitious goals you committed to in the comments. If you gave us those goals, we WILL follow up with you!

The start of a new year is a critical time as a business owner. You need to have an action plan for the calendar year that you can stick to. Here are a few supplemental tips to help you along the way.


 

1. Clump Your Action Tasks Together

How can you marry your goals together to keep from being overwhelmed? One strategy is to think about the tasks that are optimized by being performed side-by-side.

If you are a Private Money broker who needs to add a bio to your website or landing page up to attract investors and you need to get your photo taken for your business cards, you can save time by doing these actionable steps together. First, tackle your professional photo, then put your bio up on your website.

Marry the tasks.

Is there one thing you have to do in order to get the rest done? If you’re going to send out fliers to 100 people over the next month, you first need to collect addresses and have your flier ready first.

Take your big goals, break them down into actionable, measurable steps, and then analyze all them to see what fits where.


 

2. Pass the test of “I want to do BLANK so that…”

“So that” gives you a clear outcome and an intention.

“I want to purchase a property at 60% of ARV so that I can wholesale it to another investor at 65% of the ARV so that they can make money on the deal, too.”

or

“I want to collect 100 new leads of investors so that I can build networking relationships so that I can close 4 loans in Q1 of this year.”

When you know your objectives, you can a clear focus and purpose to your efforts. Sometimes the “so that” is simply “so that I can pay my bills and not put my family in more debt,” and that’s okay. Your objectives will change and grow as you do, but make sure you have reason to pair with your S.M.A.R.T. goals and your goals will be that much easier to achieve.


 

3. Swallow your frog first.

What is the #1 thing you don’t want to do on your list? Do that first, and you’ll develop momentum for your day. This tip is particularly useful if you don’t have a lot of trust in yourself.

What do I mean?

When presented with a task, do you question whether you’re really capable of performing it? Do you agree to do things you’ve never done only to regret having comitted because you don’t trust yourself to complete the task?

Just as you need to build trust with an employer, you need to build trust in yourself that you will walk your talk. Eating your frog first thing in the morning allows you to build that trust, and it’s an excellent feeling to steamroll your day!


Every day you need to know that you are working toward a bigger vision and can accomplish your goals because you have actionable steps to take that you’ve planned into your day.

When you have a road map upon which to build an action task list with time-bound, measurable steps, you can literally design your life. If you need more help getting there, or you’re just not sure how to structure your S.M.A.R.T. goals in a way that will help you achieve your maximum potential in real estate investing, give us a call. We can get you pointed in the right direction and get you the education you need. (800) 473-6051

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Facebook:

https://www.facebook.com/LeeArnoldSystem/
https://www.facebook.com/CogoCapital/

Twitter:

https://twitter.com/LeeArnoldSystem
https://twitter.com/CogoCapital

To read our latest success story and learn how a high school dropout is now making 6 figure paychecks, CLICK HERE.

10 Questions Your Potential Buyers Are Asking

Do you know what potential buyers are asking themselves when they look at your property?

We can anticipate the basics: Will they like the kitchen? Are there enough bathrooms? But what about the underlying questions every homeowner wants to know?

By now, we know that you make money when you buy and you realize that money when you sell. Easy. If you want to fully actualize all the money you can, consider some of the questions your potential buyers will have in mind when touring all the hard work you’ve made happen.

The more you can anticipate a buyer’s needs, the better you can work those into your repair plans.

But with so many various needs and demographics to consider, how do you cater to the desires of others in a way that helps you sell a house faster without going over budget and cutting into profit margin?

Can you have your cake and eat it too?

There are a handful of questions that most buyers will consider regardless of the neighborhood, ideal buyer, and price point.

Let’s count them down!


10. What about the seller’s disclosure?

Despite how a house looks, many buyers will want to know if there’s anything they need to watch out for. An inspection will show off all the properties flaws, but you may run into a buyer who wants to know what you know as soon as you know it. For instance, if there was an old septic system buried in the backyard that doesn’t affect the house’s current operation but may impact the buyer’s decision on putting in a pool someday, they may want to know.

9.What inspections do we need?

Speaking of inspections, many buyers will do multiple checks on a property; anything that the original inspector recommends. If there’s an issue in the fireplace, an inspector will recommend a professional opinion. Any problems could result in a delayed closing and further inspections. Though these things happen, and you can’t anticipate every problem, it’s worth considering what could result in future repairs for the home buyer before you put the property on the market.

This is especially true if your home buyers are using a picky lender (such as a VA loan) who requires certain items to be fixed before securing the mortgage. Have a basic understanding of codes–what height should porch steps be? Where do you need handrails? Does the bathroom vent go through the roof or stop in the attic creating possible mold problems in the future? It never hurts to know.

8. Has the home ever had mold?

There are some states where the question won’t even cross the home buyer’s mind. But in areas of heavy moisture or storm history, people will want to know. It’s assumed that a real estate investor who has flipped a property will know better than anyone whether there is mold or not. After all, very few people see behind the drywall. But what if the job requires only a few lipstick patches like new carpet and fresh paint? You may not know if there’s a problem.

It is also assumed–because there’s a rotten apple in every bunch–that some investors cut corners. Though you and I would never dream of doing unsafe, less-than-quality work, some people have been burned and word gets around. If a potential buyer asks for an inspection or the home’s history, be prepared. Buyers may also ask about radon, so be prepared if with any applicable reports you may have.

7. Why is this house for sale?

There are so many ways a potential buyer will know the house they’re viewing looked different before. It’s possible they know the neighborhood and saw the house in its distressed condition, or perhaps they’ve pulled buyer history. And usually, the beautifully staged home gives away that the property isn’t lived in at the time of sale. But buyers often want to know a little about the house’s history and why it’s for sale. This will often work in your favor as the desire for fresh upgrades is always on the rise.

6. Have all the safety features been installed?

With new builds and gutted properties, you or the contractor could overlook small details like working smoke and carbon monoxide detectors in all recommended places. Though this should never make or break a sale, you should catch the missing devices in the BLUE TAPE INSPECTION.


https://cogocapital.com/blog/blue-tape-inspections/

 

Want a checklist of all the Blue Tape Inspection points to look for before paying your contractor’s final bill?

CLICK HERE for a detailed list!

 


5. What are the zoning guidelines?

Although this may be more clear in some neighborhoods than others, buyers will often want to know if it’s possible to split the property into a multi-family home in the future or whether other houses down the street have been turned into insurance offices. Although this won’t be as important to some as to others, it could be a factor in the purchasing decisions of others. Because this effects other aspects–such as the home value and comps–you should already know the zoning and be prepared to answer any questions that arise.

4. Who are the neighbors?

This is one of the most important non-home related questions a potential buyer will ask. It’s also a question they won’t likely ask YOU directly (or the real estate agent); they’ll observe. Although you can’t control who lives next door or behind your investment property, you can make improvements to the property to compensate. If the neighbors breed dogs that are thought to be aggressive, you may consider putting in a privacy fence.

3. Does this house have everything I need?

It’s true that you can’t anticipate the needs of every buyer; that’s why houses vary so vastly. What a young couple just starting out in life needs is different than what a large family with an aging parent to care for does. You don’t have a magic ball, but you can look at trending desires; wider hallways to support both strollers and wheelchairs, a master suite on the same level as the living space on to avoid regular stair use, outdoor space in warm areas and additional parking for boats in lake towns. But how do you know what demographic will purchase your property?…

2. What neighborhood factors should we consider before making an offer?

If the neighborhood is nice but has mediocre schools, you can assume the street draws an older demographic and can plan your design and features accordingly. If the community has a plethora of trendy shops and startup tech companies, you’ll likely be selling to millennials buying their first or second home. There isn’t much you can do about the whole area, but you can make the property work for those who are most likely to purchase the property.

Understanding factors such as where the nearest stores are, if there’s public transportation or highways nearby, and what the local parks are like can help you understand what your ideal buyers look like. Though we live in blended societies, buyers will want to know what the area has to offer, who lives down the street, what the noise levels will be, and most importantly…

1. What’s the crime level?

Safety is vital! An interested buyer will look this up online or have their agent pull reports. Finding out the crime rate, area registered offenders, and more is just a click away. Although you can’t control these factors at the time of sale, you can consider them at the time of purchase and decide if the current quality of the area crime rate will affect your selling potential.

Remember the cliche that “crime has no zip code.” Anything can happen anywhere. Fortunately, most buyers won’t look at a house in a neighborhood they wouldn’t want to live in, so it’s safe to assume most of the leads you have touring the home will already be okay with the community in which it resides, but it’s always a factor to consider.


When you can anticipate the needs of the buyer and work any plans you have for the house around the most important ones, you have a better chance of selling a property fast.

However, none of these factors will matter as much as doing a quality job without cutting corners, hitting all the safety requirements, and pricing the property right. When you do your best to create a house that anyone could call home and provide a neutral slate upon which anyone could build their life, you’ll sell as well as the market allows.

Want to increase your odds of selling faster? We can help! Call us at (800) 473-6051 to learn what program will best fit your needs. Not everyone is ready for a coach or one-on-one training, but with events, home study courses, and certifications at your finger tips, why struggle along on your own?

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.


 

Attend a FUNDING TOUR to receive a $250,000 pre-approval letter for your next property. To learn more and claim your seat today, visit FundingTour.com or call us at (800) 473-6051.

S.M.A.R.T. Goals in 2018

It’s that time of year again…say it with me, “New Year’s resolution time!”

I love New Year’s resolutions. It’s the annual time where we collectively look at what we want out of life for the upcoming calendar year and challenge ourselves to make new things happen.

Sometimes the resolution is to do that one thing you’ve been procrastinating on, and you’re ready just to get it done.

Whatever your reason behind setting the new resolution, chances are, you’ve gotten there because your intent and actions haven’t met up in the past. So, you resolve to commit. The beauty of these resolutions seems to come from some synergistic attitude of our collective human advances: i.e., we thrive off each other’s energy.

January starts off great! We begin strong, managing to keep our resolutions for a few weeks. But, chances are, you will end up relapsing into old behavior sooner or later. Frustrated and defeated, you’ll give up that gym membership, shelf the self-help books, and optimistically believe you’re just “taking a break” while you settle back into the couch for a movie marathon.

So, how do you break the cycle of this repetitive cycle between the person you used to be and the person you want to be? If you attending my December CEO Fireside, you’re not likely to be surprised by my answer. You need to set S.M.A.R.T. goals.

Setting goals can often feel like writer’s block; the blank page stares up at you and your mind goes dark. By having a guide like the one below, you can alleviate the blank stares and frustration.


If you missed the December CEO Fireside, you can sign up for my January CEO Fireside and watch the December replay as a BONUS. Click HERE to learn more and jump start your S.M.A.R.T. goal planning!


 

What are S.M.A.R.T. goals?

Specific, Measurable, Achievable, Realistic, and Time-bound.

Let’s break it down…

 

Specific

Without a distinct vision, path, and benchmarks to hit, you could end up in a different place than where you wanted to be. Like taking a hike or driving across the country, there is a great deal of flexibility in getting from point A to point B, but you should have specific benchmarks in place to assure that you’re on the right road that will lead you to the correct destination.

Break down your goals into specific steps. Define the time needed to complete tasks, how you are the right person to reach the goal, and how achieving the goal will match your efforts.


Measurable

Having measurable goals allows you to track progress, stay on pace, and bypass the questioning we often place on ourselves. Instead of wondering if the tasks you are performing are helping you achieve the end goal or not, a measurable goal gives you a definitive answer.

A measurable goal should answer the following questions:

  1. How much?
  2. How many?
  3. How will I know when it is accomplished?

Set KPIs (Key Performance Indicators) against which you can measure your growth. To develop your own KPIs, start by understanding the basics of your objectives. You can also ask yourself the following questions about each KPI you put in place:

  • What is your desired outcome?
  • Why does this outcome matter?
  • How are you going to measure progress?
  • Who is responsible for the outcome?
  • How will you know you’ve achieved your outcome?
  • How often will you review progress towards the outcome?

Achievable

If your goals aren’t attainable with the resources you have, you’re setting yourself up for failure! This doesn’t mean you have to be limited by your current world, but rather that you need to understand how to expand enough to achieve a smaller goal and work your way up.

I could unquestionably become a competitive bodybuilder! But if I wanted to grease my muscles up for a national stage competition by December, it isn’t achievable with my current lifestyle, travel schedule, and undying love for Popeyes chicken. Instead, I might decide to become the best new weightlifter at my gym first and compete in a local competition by year’s end. I could break that goal down into feasible steps throughout the year and make it happen.

Take into account as many factors as you can when setting goals that are achievable. How much time can you realistically devote to a new goal? What do you need to learn first in order to make the work more productive? What can you give up to make more time and energy? What are your financial restrictions? (Be careful with this one. As opposed to the other factors, we often underestimate what we can afford. When looking at any our financial commitments to income-producing investments, we shouldn’t lead by stating “I can’t afford that” but rather by asking “HOW can I afford that?”)


Realistic

We all have a budget of motivation. Some of our budgets are higher than others, but they are finite all the same. When you set your goals too high, you run out of motivation quickly.

How? Instead of telling yourself you’re going to ditch your nightly routine of four hours of TV and a bowl of ice cream in favor of an extra three hours of marketing and one hour at the gym (a noble goal…that may only last a few days), set a more realistic version. Try cutting your TV time in half, making space for one extra hour of marketing and one hour of reading, and trade your ice cream for fruit salad. Once that habit is formed, you can continue to improve. When you start with realistic goals and work up, not only is the task easier, you’re more likely to stick with it.


Time-bound

A dream without a deadline is a dead dream. If you don’t set deadlines for your big goals and for the benchmarks along the way, you’ll find all sorts of other things to fill that time with and your goals will go unachieved.

Start at the end; what do you want to accomplish? Let’s say you haven’t flipped a house yet, and your goal is to get your first one under your belt in the first quarter of 2018. Great! Let’s get you started! It’s absolutely possible to achieve your goal in the time you’ve decided, but since you’ve yet to complete the entire process, you may need to find flexibility in the timing of your goal. If it takes you four or five months instead of three, don’t let that discourage you. Readjust your time-bound goals to best suit your efforts, and strive for improvement.

You should know what you can achieve in one day, what you can accomplish in one week, and how that will add up to make your months, quarters, and your year.


When we set S.M.A.R.T. goals that support our desired outcome, fit into our lives, challenge our growth, and get us what we want in the end, we begin to see opportunity where we once only saw roadblocks. By wisely planning the journey before you, you can press into the work to find that you’re achieving your goals instead of just spinning your wheels. You will begin to trust yourself, set higher goals, and skyrocket both your business and your self-esteem.

If you need someone to share your goals with, leave them in the comments! We’d love to hear what you have in store for 2018, how you’re going to achieve it, and what we can do to help. If you have questions about setting S.M.A.R.T. goals or would like the support of a coach, give us a call at (800) 473-6051 and we’ll get you started in the right direction.

Don’t forget to sign up for January’s CEO Fireside, and happy 2018 planning!

Wishing you a prosperous New Year;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

2018 Predicted Real Estate Trends

2018 Predicted Real Estate Trends; and How it Impacts You

As we roll through Christmas and prepare for the New Year, let’s spend a few minutes discussing the real estate trends you should prepare for.

WHY?

Each year, the market looks different. As much as you can, you should spend some time evaluating the professional predictions, looking at your local market, and working the trends into your annual goals to see faster, more effective growth.

According to Zillow, inventory shortages will drive the housing market. With 12% fewer homes on the market nationwide than a year ago, 51% of them are in the top 1/3 of home values. Not only are these properties out of reach for first-time homebuyers, but the average buyers looking to upgrade won’t likely move to get them.

Because of this trend in real estate, it is expected that builders will focus on building entry-level homes, giving more inventory to first-time and lower- to middle-income buyers. According to Realtor.com, housing starts are predicted to rise 3% over the year, but single-family home starts will increase 7%. This increase in residential housing on the starter-home level, according to economists, is the key to leveling out and bringing down home prices. Home prices will still climb, and even with new construction on the rise, economists call this increase nearly “unstoppable.” Home prices are expected to rise 4.1% in 2018, 1.1 percentage points higher than the average appreciation of 3%, but slower than the current annual pace of 6.9%.

The millennial generation is also expected to move further out from urban centers where many of them rent, giving up their preferred ’round-the-corner entertainment and shopping options in favor of affordable housing. As these 25-34-year-old homebuyers have families, they will also look for wider halls to accommodate strollers, as well as larger communal spaces. Homeownership rate will stabalize at 63.9% (according to Realtor.com) after having hit bottom in the second quarter of 2016.

Another Zillow predictions for 2018 shows that instead of buying new homes, existing homeowners will invest in remodeling to make their current home feel and look brand new. The baby boomer generation will also drive home design as the need for wheelchair accessibility, step-in bathtubs, extra handrails, and stair mobility access is needed.


WHAT DOES THIS MEAN FOR YOU?

Since housing prices are still on the rise, the current methods you are using to acquire properties may not be as effective in 2018. You would be wise to have more than one strategy to find cheap properties in which to invest.

While working with the city to improve neighborhoods by doing what we do best, I’ve discovered a way to acquire properties that are hidden in plain sight. These houses have highly motivated sellers and offer a huge profit. And I’m teaching it to you in the Master Lien Abatement Certification.


With our first class under our belt, here’s what attendees had to say:


To read more about what this program is, what we’ll teach, and how to take advantage of this wildly untapped market in your area before the competition takes it over, CLICK HERE TO READ MORE. And then READ THIS ONE. This is not the kind of stuff you want to just skim over. This new strategy can change your business!

Why are we teaching this new method at the Lee Arnold System of Real Estate? In 2018, Cogo Capital is deploying more money than ever. We need that money to go somewhere, and we’d like that money to go to you.

If you’d like to get involved in the Master Lien Abatement, call is now at (800) 473-6051. Space for the next available class is very limited.

UPDATE!: Demand for the new Master Lien Abatement Course is very high. Our first 2018 class has already filled and is closed. Please be advised that the next available class is scheduled for April 16-19, 2018.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.


To learn more about how to get $497 tickets for FREE, go to FUNDINGTOUR.COM or call (800) 473-6051.

We Love OPM

- - Borrowing, Entrepreneurship

What is OPM?

Most people don’t have the personal capital to buy and renovate houses to put on the retail market for profit. Yet so many self-made millionaires make their money with real estate. So how do you bridge the gap between not having enough money for your first project and having an abundance of capital to fund larger deals, more deals, and other people’s deals (making passive income on the interest)?

How do you go from no-capital to plenty of it?

OPM

OPM (or “other people’s money”) is a great tool. Nix that, for many of you, it isn’t a tool at all; it’s a necessity to get started and/or keep going in your business.

When I was just starting out, I knew I needed OPM to do the things I visualized. I was working at a grocery store as a bag boy. I didn’t have the capital to start a project and to be honest, I didn’t have much of an idea how to get it. But I knew what I needed to get started.

I learned the hard way.

Let me help you avoid the hard way.


Don’t let the preconceived notion that no one wants to lend to you cloud your vision and your dampen your goals. People want to lend money to you, but you need to find the right people and come to them with the right deal.

Why Other People Like Lending their Money?

This one is simple. Not everyone has the time to find good deals. If you invest the time to find the good deals that others can invest in, they will flock to you. FLOCK. Remember what I always say? Money isn’t attracted to you; money is attracted to a good deal. Get a good deal under contract and finding the money to fund it is the easy part.


When You Can Safely and Efficiently Use Other People’s Money

Just like any debt, a loan from anyone should be used to produce income with. We’re obviously not talking about taking out a loan to fund your vacation; that’s . No matter who you borrow from, make sure you’re both clear on the terms, the numbers, the expected communication, and the time frame of the loan. Err on the side of over-responsible, especially if you want to borrow money again in the future.


The Worst Ways to Find OPM

– Family

– Friends

When you need something, your knee-jerk reaction could be to call up those closest to you. It’s what I did, but I don’t advise you to follow in the footsteps of my frustration. Why? Because even if your family and friends have money to lend you–because you wouldn’t ask them if they didn’t–they aren’t likely to see the investment opportunity, they see you. YOU.

My friends and family saw me as a punk kid with a wild dream. They told me to stay in school and keep my job at the grocery store so I could one day be an assistant manager if I tried hard enough. And, looking back, I don’t blame them. But, once I proved myself as a viable investment by putting deals together that created consistent income, their wallets wiggled open. For me, this took years of turmoil. I got on the phone and raised capital through hours of networking, I trail-and-errored my way up until I found mentors to teach me what not to do.

Now, I send a single email, and I’m flooded with positive responses. I’ve done deals with my friends and family during my career, and I’ve been able to show them the higher return on their money real estate can bring. I spent time proving that I have a business model that makes sound financial sense, and you should, too.

Get a few deals under your belt, show your family before and after photos and copies of your profit checks.

But how do you find money in the meantime?


The Best Ways to Find OPM

– Networking with Strangers. This method is great because it forces you out into the world of your “competitors.” Most people are afraid to rub elbows with their competitors, but I’ve never understood that. You shouldn’t view other people in this business as opponents; you should consider them as potential capital partners. You should be building relationships with fellow investors through your networking events if you’re following my Rule of 56. I don’t ask you to meet new people just to expand your circle of friends. We’re networking for potential partnerships, among other things, so take advantage. Real estate investment seminars are a great place to network with strangers, as are foreclosure auctions.


If you haven’t attended one of our events, I encourage you to make it a priority in 2018. We put great people together in our event rooms, so you have the opportunity to network together. When you find a great deal, you can call up one of these peers.

Visit Fundingtour.com for more!


– LinkedIn can be a great way to network and find equity partners and private investors. I never advice spending too much time on social media–as it can be one of the worst time-sucking holes we fall into–but when you know how to use LinkedIn, Facebook, and other social media platforms to meet fellow investors, you have the potential of building valuable, wealth-building partnerships.

– Private Money Lenders like Cogo Capital. One of the reasons we see new investors visiting our website daily is that we have something valuable to offer: a safe and secure investment. Our investors deploy money for short periods of time and get a check every month from the borrower. Everything is underwritten, in order, and the title work is done for them. With a turnkey package ready to go, our lenders love this! And in turn, our borrowers find the capital they need to do the work that will make them wealthy. Remember that when you’re out there finding great deals, you are bringing significant value to anyone who has more money than time. (Sounds a lot better than getting on the phone with all your friends to round up some money, doesn’t it?)


What We Do with OPM

There are two things you can bring to a partnership: Money or Time. If you have both, you don’t need a partner. If you don’t have the money, guess what your end of the bargain is? Time. You need to put in the time to research, pull lists, write letters, make calls, meet with sellers, write contracts, and put the deal together.

Once you have a deal all wrapped in a bow (the bow is entirely optional), you have something tangible to offer a lender. When you bring a deal to the table, a lender looks at the DEAL that you have under contract and not at YOU (with whatever past you have tucked in your back pocket). In fact, private money lenders like Cogo Capital don’t pre-qualify you based on YOU. We are an asset-based lender who has lent millions and has more money to deploy than you’ll ever need, and we deploy that money based on the opportunity you bring us.


When you take yourself out of the equation and get really good at getting great deals under contract, finding OPM isn’t going to be a problem. Prove yourself first if you eventually want to use money from your friends and family. Or, better yet, get to a place where you don’t ever need money from your friends and family and lend to them instead.

If you believe you have a great deal, visit us at https://cogocapital.com to fill out a brief questionnaire. You’ll receive a quote via email, or call us at (800) 747-1104. We’re here to lend you OPM. It’s what we excel at.

Yours In Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.

Novice Borrowing

- - Uncategorized

Real Estate is a long-term finance and management proposition.

You must be an efficient manager for your properties if you’re going to be a successful investor, but equally important, you need to secure a trusted source of financing.

Less money down equals more deals, more equity, more net worth, and more cash flow.

If you are just starting out in the investment world, the first source of financing you may think of is conventional, bank finance. That’s what you’ve secured for your primary residence, and it might be all you know. Especially if you’re new to this field. Conventional financing has perks, but not always for investing.

Let me explain the difference between conventional and private money.

As you may know, bank financing typically requires a down payment based on the appraised value of the home or the purchase price, whichever is lower. This doesn’t give you an advantage when buying a distressed home, and they’re not going to loan you money for repairs. All that additional cost will come out of pocket. This means that your investment into the real estate transaction is the down payment (up to 20%), the closing costs, and the bill for repairs.

**Let’s say you have a property for purchase at $55,000 that needs $20,000 in repairs to have an ARV (after repair value) of $100,000.**

  

Bank advantages; low-interest rate, long-term financing

Bank disadvantages; they require an inspection.

If the house needs $20,000 in repairs, the bank is not going to loan out the money until the repairs are done. You can go to the owners and request they do this for you, which isn’t likely going to happen. And if you’re buying the property as a foreclosure, that’s definitely not going to happen. Also, banks won’t allow double closes or assignments, so when you get a deal from a wholesaler or flipper wanting to assign the property to you, the bank isn’t going to allow it. This excludes many potential deals.

Now, let’s say you can get over all of this. Here’s the worst disadvantage for turning to a conventional loan for a distressed property; it can take 30-60 days to close. When you’re buying these properties from motivated sellers or from banks that want to get rid of the asset, time will kill the deal. A motivated seller will take a lower offer if you can assure them the property will close in, say, ten days.

Bottom line for this example; if you’re able to secure a bank loan for a distressed property, you’re looking at a 55% ROI. Not bad.


Now, let’s talk about private money, which comes from a private source specifically for real estate investors.

In contrast to a bank loan, these loans have a higher interest rate and a shorter-term loan, as they are designed specifically for short term investments. A private money lender knows the property could be in rough, distressed shape, and that’s okay. The cost of the repairs can be covered in the loan, which means no out of pocket from you for the rehab of the property. The biggest advantage–contrasting of course with the long process of a bank loan–is that a private money lender will close on the property in as little as a few days. This strengthens your offer, giving you an advantage over other interested parties who have bank financing.

Private money lenders will loan based on the ARV and not based on the purchase price. The lower you buy the property for, the less you’ll bring to the table. Less money down gives you the opportunity to do more deals, which is more opportunity for profit.

If you turn to a Private Money Loan for this example, your ROI jumps from 55% to 200%. Which would you choose?


Each finance option serves a purpose, but if you’re investing (and especially if you’re flipping), get a fast quote from CogoCapital.com. For more, check out: Cogo Capital _ Private Money For For Real Estate Investors

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.

6 Steps to Fantastic Follow Up

Indulge me by answering this simple question: Would you rather spend all your time and resources hunting for new clients, or spend less time maintaining your current client relationships?

If you chose the first option, will you send me all your old client information so I can mine for the gold?

Many people don’t realize how big a gold mine they’re sitting on with the numbers in their directory. I’ve seen people build multi-million dollar businesses off of a client base that steadily grows but remains largely the same. Why? Because these business owners understand the importance of maintaining quality client relationships that lead to more business.

Even if you only have a few clients (or none at all because you’re just starting), you can build a solid client base by practicing my follow-up system.


Maintain Communication

Regular follow-ups give the customer a chance to be heard and engaged effectively. Whether you know it or not, many clients expect you to keep in touch. People want to be told what to do and expect next, so provide them with tangible opportunities. They may even have another property or job lined up for you, but unless you reach out, they could take it elsewhere.

Listen

Following up makes your customers feel special, therefore increasing reliability from them. But, what happens when you follow up and they have a beef with you? LISTEN to it! Provide them with a chance for you to prove yourself by improving what needs to be corrected, and you may end up with the strongest client connection you’ve ever had. You can never listen your way out of a customer.

Go the Extra Mile

When you fulfill a customer’s expectations, you’ve already given them a reason to business with you again. Remind them with regular follow-ups, and you’ll inspire them to remain loyal supporters of your business.

Offer Incentives to Let Them Know You Appreciate Them

Send them a package of cookies or a coffee gift card; you’ll never know how great an impact something so small can have on your business until you do it. Studies show that when people feel appreciated by you, they associate the feeling with working with you.

The opposite is painfully true. 68% of customers leave a company because they perceive that the company is indifferent toward them. If you could avoid losing 68% of your clients by showing them you care, would you?

Make It Easy for Them to Work with You

When working with you is the next logical step for your clients, and you remind them of this through your follow-up system, then you won’t be short on business opportunities. Keep your process simple, anticipate their needs, and stay up-to-date on your consumer knowledge.

And lastly…
Make It Easy for You to Follow Up with Them!

Set yourself up for success by systemizing your follow up routine. Set up:

– A Customer Relationship Management System (CRM)
(You’re going to spend all this time making calls, dropping letters, and securing customers, but who is communicating with them when you’re on vacation?)
– An email deliverability service which sends emails, surveys, and auto-responders
– A Website
– A Blog
– A system to send out newsletters, reports, and webinar invites
– An online system to disseminate real-time information for client consumption (webinars)

Remeber; be annoying, be a pest, and be a CONSTANT REMINDER that your service provides others with RELIEF. The worst thing you can have in your business a client with a deal come to you with a missed opportunity because they lost your number!

Something as simple as a phone call can tell your client that you don’t take them for granted.

For more on creating a quality Follow-Up System, CLICK HERE.


I’m unveiling a new Lien Abatement program in Las Vegas in December. (To read more about it, CLICK HERE and HERE.) This information will give you a HUGE edge against your competition. It’s fast approaching. You don’t miss this training! Lein Abatement Specialty Certification weekend in Las Vegas on December 7th-10th, call us at (800) 473-6051.

 

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE and HERE to read how others are finding, funding, and making money on their deals.

The Reduction of the Ridiculous

 

Did you know that you could own a beautiful home worth $500,000 for the change you might find under the seat of your car?!

Now, before you get up in arms about me making unrealistic, outlandish financial claims, let me explain:

If you purchase a house for $500,000 with 20% down at a 3.78% interest rate for 30 years, you’re going to pay $1,859.28 a month on your mortgage.

Take $1,859.28 and divide it by the days in a month:
1,859.28/30=61.97

Now, divide by the hours in a day:
61.97/24=2.58

Finally, by the seconds in an hour:
2.58/60=0.04

If you pay just $0.04 (ONLY FOUR CENTS!) per second for thirty years, you too can own a half-million-dollar house!

Did you see that? I just made a giant sum of money (That’s $669,340.8 after you’re done paying it off in 30 years) look manageable!

I jest, but not without a point. If you can take a large sum of money and make it look minimal and achievable, then you can take a sizable goal and turn it into minute, actionable steps.

How do you make it as simple as it sounds? By using a tool, you’re already employing elsewhere; your habits. By redirecting your patterns and behaviors, you can take small moments and multiply them into considerable successes. Now, you can’t habitually create $0.04 per minute–the money is a product of habits you put in place to generate that income. But you can develop better practices when it comes to employing better behaviors.


“It is better to take many small steps in the right direction than to make a giant leap forward only to stumble back.” Chinese proverb


Let’s consider another example.

Assume you have 50 extra pounds of body fat than you’d like to. If your goal is to “lose weight,” but there isn’t any behavioral change behind it, how are you going to make it happen?

I hear from people all the time that they want to “make more money” or “be a millionaire.” I love goals, but without action, just stating a financial goal is as effective on your bank account as whispering song lyrics in front of American Idol.

So, you want to lose 50 pounds. Great! How do you break that on a time-manageable level? “I’m going to lose 50 pounds in two months!” isn’t very sustainable.

“I’m going to be a millionaire by the end of the year” isn’t achievable from the position of a beginner as, say, “I’m going to earn $40,000 above and beyond what I’m making this year, and will strive for $100,000 the year after.

If you break losing 50lbs down into 50 weeks, that’s a pound a week for a year (if you account that a few weeks won’t result in a loss, no matter how hard you try). If it takes 3,500 calories of intake to make a pound and 3,500 burned calories to lose a pound, then for the seven days of the week, you only need to have a 500 calorie swing. You can burn an extra 250 by riding your bike at a pace of 14-16 mph for 25 minutes AND refrain from eating 1 candy bar OR avoid drinking 1 16 oz bottle of soda.

If you want to make $100,000 in a year, you’re looking at retailing four houses for an average profit of $25,000 a piece. To get four houses under contract, rehabbed, and sold in 12 calendar months, how many offers do you have to make? To make those offers, how many leads do you need to call?

If you’re familiar with the Lee Arnold System of Real Estate at all, you should know this answer. If you don’t know the Rule of 56, you should read about it HERE.

If you need to mail 25 letters a week, divide that by five working days, and you only have five a. What do you suppose would happen to your real estate business after a year if you committed to mailing five letters every day on your lunch break.

You already have habits. I’m not asking you to do more than you’re doing. But, if you take that hour lunch period to mail letters instead of catching up on office gossip or doing a crossword puzzle, and that one act would catapult your business, would you do it? If you could avoid 1 Taco Bell Soft Taco Supreme with gaucamole every day and walk the dog for 30 minutes in the morning to drop that comfort weight that’s crept up on your for two decades, would you do it?

Take your large goals, break them down, and employ manageable steps, you’ll be able to “eat the elephant” one spoonful at a time.


 

Register to attend an upcoming Funding Tour and immediately receive a $250,000 pre-approval letter for buying real estate investments!

 


Always Encouraging You;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.

My Secret, Exposed

- - Borrowing, Flipping

 

Want to know a secret? Something that’s resulted in putting together more deals than I can count?

 

I have a client in San Francisco who I worked with back in April 2012. I’d been working with my client since the November of the previous year, teaching him how to find, work, and secure leads by using the Rule of 56. While in California visiting, my client told me he had a beautiful home (that’s code for completely trashed) in a nice neighborhood that he had gone “out of his way” to track down the owner.

So, I ask him what he’d done to find the owner. He said he went to Craigslist, searched on Google, tried People Finders, and even paid to $25 for a report. He’d contacted the owner’s nephews, nieces, cousins, and nobody knew where this guy was!

Clearly, at this point, I’m intrigued. So, while I’m out there doing business, I ask my client to show me the property.

He took me out to the property near UC Berkeley, behind the beautiful Clarion Hotel. This property sits right below the Clarion. The piece of land the house sits on is worth a million alone. Fix up the house, and the property value was $1.5 million without blinking an eye. And this was back when Facebook, just 20 minutes away, was turning out thousands of millionaires in the bay area via the IPO.

To get to the front of the house, we literally walked over trash, tumbleweeds, boards, and piles of garbage. Under it all, I could sort of see a house, but it was quite a trek to get there.

Now, I did something at that moment that if you will employ this one strategy into your business, you will make more money than you could possibly imagine.

This is my secret, but I’ll share it with you. I need you to pay attention and write this down.

Are you ready for it?

Here it is.

I knocked on the door.

It opened. “Can I help you?”

“Good evening, Sir,” I said. “My name is Lee Arnold. We’re real estate investors who love this neighborhood, and we’re looking to buy property in the area, and I’m curious if you knew of anyone willing to sell.”

What do you suppose he said?

“Well, I might be willing to sell,” he said.

Really?! Shocking, right? I mean, this guy had a proverbial billboard in front of his property saying, “I hate this home, come buy it from me.” No one trashes a house they love. (I wasn’t surprised by his answer, in case my sarcasm didn’t properly translate.)

So, my client continues to go back to this property, building a relationship with the owner. A few weeks later, he sends me a message stating that he has another appointment with the homeowner. So, I told him, “Do not leave that house without getting a signed offer.”

“But,” my client protested, “he hasn’t accepted an offer I’ve made him.”

I told him it didn’t matter and to print off a purchase and sales agreement with his name on it and the homeowner’s name on it, and to GO!

So, he went.


If you haven’t read my article about never leaving a property without making an offer, CLICK HERE.


Then, I got an email from my client later that day saying the man accepted the offer and signed the agreement.

“Great!” I said. “What’s the price?”

Want to guess what my client paid for that $1.5 million property?

$525,000.

All because my client followed the Rule of 56, created leads, and then followed up with them until he got an offer accepted.

I cannot tell you how many clients I have through the Lee Arnold System of Real Estate who spend all this money and energy producing and creating leads, and then they don’t mail, they don’t call, they don’t follow up, and they don’t write offers. Then, they wonder why they’re not succeeding.

It’s not too difficult.


If we sat down together and I asked just three questions, I could find out the status of your business.

  1. How often are you mailing?
  2. How often are you calling?
  3. How many offers have you written?

If you’d like to have a six-figure business in the next twelve months, all you have to do is follow this simple rule. To read more about what the Rule of 56 is and how to use it in your business, CLICK HERE.

Do you want to have a good problem to have? Be UNABLE to call all your leads because you have too many. But, until you’re overflowing with people wanting to sell you their house, you need to follow this simple formula to success. Then, once you have your pick of the deals, where do you go to get them funded? (I’ll help you out; the question is rhetorical).

If you’re ready to start working with private money lender that puts you first,  COGO Capital, call us at (800) 473-6051 to discuss your deal or go to CogoCapital.com to receive a rate quote. For our latest success stories, click HERE and HERE to read how others are finding, funding, and making money on their deals.

We can teach you what to say in your letters to yield results.

We can instruct you on what to say on your phone calls.

We can help you find events.

We can show you how to make offers.

Let us help. Call 800-533-1622 to talk to a business developer or attend an upcoming Funding Tour to learn how to solve the riddle of your journey to success.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

The Art of Marketing

- - Entrepreneurship

You may have 99 problems, but marketing shouldn’t be one.

“Marketing is too important to be left to the marketing department.”~ David Packard

If you are new, if you are experiencing, if you have a pulse, you need to be marketing more. Unless clients are beating down your door to do business with you, you need to vamp up your marketing strategies often to reach more of the right kind of people to do business with.

Your ideal clients are out there, whether you broker, wholesale, or fix and retail homes. But before they can be clients, they have to be leads, and they don’t become leads without first being marketed to.

Here are Ten Tips to Successful Marketing to jump start your business:

1- Respect people’s time. This goes for writing ads to setting up meetings. Be brief, be knowledgeable, be articulate, and value the time of the person you’re communicating with, or they won’t want to spend time interacting with you.

2- Make people feel good about their purchase. This is also known as a “Stick Campaigns.” Make sure they know you value their business by sending them appreciation, buying them dinner, or simply sending a note of thanks.

3- Write and test your headlines. If you’re running craigslist ads, change up your ad with some split testing. Put two ads out there with the same message and use a different headline for each. Throw a different phone number on each ad and see which gets more calls.

“The aim of marketing is to make selling superfluous.” ~ Peter Drucker

4- Turn your services into client benefits. If you aren’t benefiting your clients with your services, and you can’t actively show how you’re doing this, then people are going to view you as someone who just wants their money. Do you do business with people who just want your money? I suspect not.

“Help your customers and you help your business.” ~ Leo Burnett

5- Use an emotional pull in your marketing. What is it in your marketing that makes people want to take action and get involved in what you’re doing? If you ask the right kind of questions to figure out what someone wants and can highlight those benefits, you’ll connect emotionally and increase your chances of turning a lead into a client.

“Stop interrupting what people are interested in and be what people are interested in.” ~ Craig Davis, former Chief Creative Officer at J. Walter Thompson.

6- Let the customer testimonials do the talking. If you aren’t getting 3rd party customer testimonials (comments on your blog, video testimonials, written recommendations), then you’re missing out on one of the most powerful forms of referral. Get people to say nice things about you and then get permission in writing to use those testimonials in your marketing.

“Make your customer the hero of your stories.” ~ Ann Handley

7- Create a sense of urgency. Want another powerful tool? Offer to give something small but valuable away for free, and then make sure you don’t give it to someone until you get what you want from them (i.e., contact information or their lead list).

8- Harnessing the power of referrals. When you close a loan, ask them for three people who could benefit from your services. If you’ve done great business with people, they’ll be eager to refer others to you, but may need a reminder. Open mouth, open business.

9- Use the phone as a tool. Don’t struggle with “phone fear.” Most of you, after dialing a number and waiting while it rings are thinking “please don’t pick up, please don’t pick up.” If you can get friendly with the telephone, you’ll begin to understand why the phone is the most effective form of communication because it doesn’t require you to travel. Surely, driving out to see someone face-to-face and getting to know them is valuable, but to accomplish the amounts of communication you need to succeed, the phone is your best friend. Pick up the phone and talk to people! You won’t regret maximizing the quality of contact.

10- You must envision your success before you begin. This is true for all business. I’m huge on goal setting and establishing your vision of what you want to accomplish and when you want to accomplish it. If you’re eager to get back into your goal setting, don’t wait until the new year. The more clearly you can narrow in on your goal with specific details, the more likely you are to achieve what you have envisioned. I’ll be talking about goal setting during my next CEO Fireside this coming Monday, November 6th at 5:30 pm PST. To learn more or register to participate in this webinar, you can do so HERE.

Using these tips to increase your marketing power, you will generate more leads and convert them into more clients. Don’t forget to join me on Monday, November 6th for a goal-setting focused CEO Fireside. I’ll see you there!

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

We have several Funding Tours fast approaching. If you’d like to have your ticket paid for AND receive a $250,000 pre-approval letter for attending this 3-day educational even, CLICK HERE to learn more or call us at 800-533-1622. We’ll even take you into the area on a bus tour to learn hands-on what it is like to find and fund a good deal. If you’re a beginner, you CANNOT afford to miss this opportunity. I’ll see you there.